There are several different ways that California companies fail to comply with the labor code in paying commissions to sales employees.
It is illegal for employers to fail to pay commissions earned but not yet collected at the time an employee leaves a company, either by quitting the job or termination. Failure to pay commissions or other wages owed at termination subjects an employer to additional liability for waiting time penalties, pursuant to California labor code section 203.
There are two different types of sales employees under California law, inside sales employees and outside sales employees. Employees who do not work in excess of 50% of their working hours outside of the office are generally considered inside sales employees, and must be paid at least minimum wage for all hours worked. Additionally, these inside sales employees are generally entitled to receive overtime. If the inside sales employee does not make enough sales to earn at least the minimum wage, plus overtime for all hours worked, the company must pay this minimum amount to the employee as a salary.
Contact Our California Unpaid Commission Lawyers
If you believe you are owed commissions from a current or former employer, the Law Offices of Michael S. Cunningham can discuss the facts of the case with you, explain the law, and often times represent you in a lawsuit against your former employer. Contact us today at (858) 376-7390 to setup a FREE consultation with a California Commission Lawyer about your case.